Having reported higher-than-expected sequential revenue growth of 3.8% at US $ 2,066 million for Q2FY14, Infosys has sent the entire Indian IT sector thumping. BSE IT index is trading higher by 3.5% with all 10 scripts advancing to nil declining. While Infosys is leading the pact with 5.3% gains, other biggies like HCL Tech, Wipro, Tech Mahindra, leader TCS are all trading higher anywhere between gains of 2.4% to 4.4% in the first 90 minutes of trade.

Infosys, India’s second largest software exporter, which one-upon-a-time, stood for the booming India IT sector, has been reporting lower-than-industry growth of 8-9% versus 12-14% for peers, which slashed its PE multiple from high-twenties to mid-teens. Infy is currently trading at PE multiple of close to 18 times, and is likely to see further expansion.

Rupee depreciation and greater top management focus chaired by NR Narayan Murthy seem to be working in the company’s favour. Analysts now expect bumper results season ahead from other IT players. Meanwhile, Nasdaq-listed iGate reported 3.6% revenue growth for September quarter.

The question now remains - can Infy climb back to its previous glory and carry the flag of Indian IT with pride on its shoulders, once again?